Butadiene, also known as 1, 3-butadiene, is an important industrial chemical that is predominantly used in the production of synthetic rubbers such as styrene-butadiene rubber and polybutadiene rubber. These synthetic rubbers exhibit several advantages over natural rubber including better resistance to oils and solvents, enhanced mechanical strength and durability. Due to lightweight and durable properties, synthetic rubbers find wide applications in tire manufacturing, footwear, industrial goods and more. Rising demand for these rubbers from automotive and construction industries is expected to drive the butadiene market.

The global Butadiene Market is estimated to be valued at US$ 15681.17 Bn in 2023 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity

The opportunity in synthetic rubber production is expected to boost the butadiene market considerably during the forecast period. Synthetic rubbers have superior strength and durability when compared with natural rubber which is driving their demand from tire, footwear and industrial applications. Butadiene acts as a key raw material in the production of synthetic rubbers like styrene-butadiene rubber and polybutadiene rubber. According to a third party report, the global synthetic rubber market is projected to witness a CAGR of over 5% and reach a valuation of US$ 50 Bn by 2030. This growing demand for synthetic rubbers from end use industries is anticipated to augment the consumption of butadiene over the coming years, driving high growth of the global butadiene market during the forecast period.

Porter's Analysis

Threat of new entrants: The Butadiene market has moderate threat of new entrants as technology and capital requirements are high. However, opportunities exist to develop cost-effective production processes.

Bargaining power of buyers: Buyers in the Butadiene market have moderate to high bargaining power due to availability of substitute products. Buyers can negotiate on price and quality standards.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative raw material sources. However, suppliers hold key expertise in extraction technologies.

Threat of new substitutes: The threat is moderate to high as alternatives like bio-butadiene are emerging. Research is ongoing to develop renewable and sustainable production methods.

Competitive rivalry: Competition is intense as market players compete on pricing, product differentiation and customer service. Market consolidation can be expected through strategic mergers.

SWOT Analysis

Strengths: The Butadiene market benefits from strong demand from the rubber industry. Production technologies are well-established.

Weaknesses: Market witnesses volatility in raw material prices. Shift to sustainable alternatives poses challenges to existing production infrastructure.

Opportunities: Rising penetration in developing nations presents new growth avenues. Technological innovations allow production from non-petroleum sources.

Threats: Stringent environmental regulations across major economies increase compliance costs. Slowing economic growth impact downstream rubber demand.

Key Takeaways

The Global Butadiene Market Share is expected to witness high growth due to rising consumption of synthetic rubbers across industries.

Regional analysis for Asia Pacific region comprises over 50% market share led by China, India, Japan and South Korea. Expanding rubber manufacturing base and increasing vehicle production support ongoing demand growth in the region.

Key players operating in the Butadiene market are Thermo Fisher Scientific, Synbio Technologies, Merck KGaA, Agilent Technologies, Inc., GenScript, Amyris, Eurofins Genomics GmbH, Integrated DNA Technologies, Inc., Codexis, Inc., EnBiotix, Inc., Synthego, New England Biolabs (UK) Ltd., Scarab Genomics, LLC and Genomatica, Inc. Players compete on product development, ability to produce sustainably and establish strategic global supply partnerships.

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